ZZZ Company has $15,000 to invest. Management is trying to decide between two alternative uses for the funds as follows.

ZZZ Company has $15,000 to invest. Management is trying to decide between two alternative uses for the funds as
follows. The company’s discount rate is 16%
Project A Project B
Investment required $15,000 $15,000
Single cash inflow at the end of 10 years $0 $60,000
Annual cash inflows $4,000 $0
Life of the project 10 years 10 years
Which alternative would the company choose and why?
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